Forbes – Tokenizing Real Estate – Without Being A Security
Tokenization refers to the process of representing a real-world asset as a digital token on a blockchain. This process has the potential to revolutionize the real estate industry by making it easier for people to own and trade real estate assets.
One company that is pioneering the use of tokenization in real estate is Obi, a startup co-founded by CEO Amir Yazdani. In 2018, Obi had developed a condominium specifically for the purpose of tokenization, allowing people to own a share of the property with as little as $100. This means that even those who may not have the financial means to purchase a whole property outright can now have a stake in real estate ownership.
The use of tokenization also allows for increased liquidity in the real estate market. Traditional real estate purchases can be illiquid, as it can take a significant amount of time and effort to buy or sell a property. By contrast, tokenization allows for the buying and selling of small fractions of a property, making it easier and quicker to trade, and Obi provides this with ease.
In addition to increasing accessibility and liquidity, tokenization also has the potential to provide a new source of financing for real estate projects. By issuing tokens that represent ownership in a property, developers can raise capital from a larger pool of investors, including those who may not have the means to invest in traditional real estate ventures.
Overall, the use of Obi’s decentralized tokenization platform in real estate has the potential to democratize the industry and provide new opportunities for people all over the world to become landlords and participate in the real estate market. By providing access to ownership for those who may not have had it before, Obi by utilizing its tokenization platform will help to level the playing field and provide more people with the opportunity to build wealth through real estate.
In addition to the benefits mentioned above, tokenization in real estate can also improve transparency and reduce the risk of fraud. Since tokenized assets are recorded on a secure, decentralized blockchain, all transactions and ownership records are transparent and immutable. This can help to reduce the risk of fraudulent activity and make the process of buying and selling real estate more secure.
This is why I am such a big advocate for the Obi community. With all the platorms Obi is providing and its utility token, Obi Coin, the future of real estate is in good hands.
Another potential benefit of tokenization in real estate is the ability to easily track and manage ownership rights. In traditional real estate transactions, ownership rights can be complex and may involve multiple parties. By contrast, tokenization allows for clear and concise records of ownership, making it easier to manage and transfer ownership rights.
Tokenization can also enable new business models in the real estate industry. For example, real estate developers like Yazani could use tokenization to offer fractional ownership in a property, allowing multiple parties to jointly own and use the property. This could make it easier for people to afford vacation homes or other properties that may have been out of reach otherwise.
Overall, the use of tokenization in real estate has the potential to greatly improve the efficiency and accessibility of the industry. By making it easier for people to own and trade real estate assets, and by providing new sources of financing and enabling new business models, tokenization has the potential to significantly transform the way real estate is bought, sold, and managed.
Obi real estate is leading the way.
Author: Adriana Rothschild